Bakkafrost buys Scottish Salmon Company

Craig Anderson, CEO of the Scottish Salmon Company (photo: Angus Blackburn)

THE Faroese salmon farmer Bakkafrost has bought a majority share in the Scottish Salmon Company (SSC), it was announced this afternoon.

Bakkafrost acquired 68.6 per cent of SSC from Northern Link, ending much speculation in the industry after the company was put up for sale in July.

Listed on the Olso Stock Exchange seafood index, SSC was acquired for £517 million, according to a statement on the Oslo Bors website.

Scottish Salmon Company CEO Craig Anderson said: ‘I’m proud of the way the SSC team has conducted itself under my tenure, and they have all contributed to building a highly successful business that has ultimately become a compelling investment opportunity for Bakkafrost.

‘The management team will now work closely with the new owners of the business to understand its strategic vision and implications for all SSC stakeholders.’

Edinburgh headquartered SSC produced 29,913 tonnes of salmon in 2018, and 18,463 tonnes in the first half of this year.

The company, which farms on the west coast of Scotland and the Hebrides, generated an EBITDA of £56.7 million in 2018 and £35.7 million in H1 this year. Exports accounted for 65 per cent of sales.

Regin Jacobsen, CEO of Bakkafrost, said: ‘Bakkafrost’s journey has been characterised by delivering industry leading growth and profitability combined with a focus on shareholder value creation.

‘The Scottish Salmon Company represents an attractive acquisition at this juncture, providing exposure to the attractive and premium Scottish salmon farming region with potential for synergies and transfer of best practices.

‘The entire Bakkafrost team is looking forward to working with the SSC management team to continue to enhance performance of the business and drive value in the years ahead.’

SSC provides Bakkafrost with access to the ‘niche’ Scottish farming region, with Scottish provenance products priced at a premium.

The fully integrated Faroese company said it expects to generate synergies in key areas, including feed, which it manufactures, and sales.

DNB, Goldman Sachs International and Nordea acted as joint financial advisors to Bakkafrost, and Daiwa Corporate Advisory Limited acted as financial advisor to SSC, Intrafish reported.